READ.ST WACC - Weighted Average Cost of Capital

The WACC of Readly International AB (publ) (READ.ST) is 6.4%.

The Cost of Equity of Readly International AB (publ) (READ.ST) is 6.40%.

The Cost of Debt of Readly International AB (publ) (READ.ST) is 5.30%.

	Range	Selected
Cost of equity	5.50% - 7.30%	6.40%
Tax rate	0.90% - 2.40%	1.65%
Cost of debt	4.00% - 6.60%	5.30%
WACC	5.5% - 7.3%	6.4%

WACC

READ.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.48	0.54

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.50%	7.30%

Tax rate	0.90%	2.40%
Debt/Equity ratio	0	0
Cost of debt	4.00%	6.60%

After-tax WACC	5.5%	7.3%


Selected WACC	6.4%

READ.ST's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for READ.ST:

cost_of_equity (6.40%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.